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CTP · Question #554

(Topic 6) All of the following statements are true about loan participations EXCEPT:

The correct answer is D. they are traded in the secondary market. See the full explanation below for the reasoning.

Question

  • (Topic 6)

All of the following statements are true about loan participations EXCEPT:

Options

  • Amore than one lender commits to them.
  • Bloan advances and payments are divided among the participants.
  • Cloan servicing is provided by the lead institution.
  • Dthey are traded in the secondary market.

How the community answered

(24 responses)
  • A
    4% (1)
  • B
    4% (1)
  • C
    13% (3)
  • D
    79% (19)

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